(i) IS DUE on [January 1] DECEMBER 1 of the tax year; and

(ii) except for the service charge, may be paid without interest on or
before [January] DECEMBER 31 of the tax year; AND

(III) MAY BE PREPAID WITHOUT THE SERVICE CHARGE OR
INTEREST ON OR BEFORE SEPTEMBER 30 OF THE TAX YEAR.

[(k)] (J) (1) [(1)] If an escrow account is established for the payment of the
property tax, the escrow account servicer shall pay [tax in annual payments
SEMIANNUAL INSTALLMENTS unless the escrow account servicer has received
written direction from the property owner or borrower to pay] property tax in
semiannual installments ANNUAL PAYMENTS.

[(2) If a taxpayer provides written direction to an escrow account servicer
at least 60 days prior to the beginning of the tax year, property taxes shall be paid on
a semiannual AN ANNUAL payment basis on behalf of that taxpayer by the escrow
account servicer in the tax year that begins immediately following the year in which
the written direction was received.

(3) Except for a semiannual payment schedule election made under
subsection (c)(1) of this section, if IF a taxpayer provides written direction to an
escrow account servicer less than 60 days prior to the beginning of the tax year,
property taxes may be paid on a semiannual AN ANNUAL payment basis on behalf of
that taxpayer by the escrow account servicer in the tax year that begins immediately
following the year in which the written direction was received.]

10-402.

(a) (1) Except for tax sales as provided by Title 14, Subtitle 8 of this article,
if real property ownership is transferred on or after the date of finality and before the
semiannual date of finality, the transferee is liable for the property tax on real
property for the taxable year that begins after the transfer.

(2) If real property ownership is transferred on or after July 1 and before
January 1, and the [transferee elects] PROPERTY IS SUBJECT TO a semiannual
payment schedule of property tax for the current taxable year under § 10-204.3 of
this title, the transferor is liable for any semiannual property tax installment that
may be due for the real property in the current taxable year at the time of transfer,
and is not liable for the second semiannual installment that is due after the date of
transfer. The transferee is solely liable for any semiannual property tax installment
for the current taxable year that is due after the date of transfer.

(3) This subsection does not preclude the transferor and the transferee of
real property that is subject to this subsection from adjusting the property tax or
service charges for any year between them.

SECTION 2. AND BE IT FURTHER ENACTED, That for the taxable year
beginning July 1, 1999, a semiannual payment schedule election under § 10-204.3 of
the Tax - Property Article shall apply to the property tax due and not in arrears for
the current tax year for any transfer occurring on or after July 1, 1999 but on or
before September 30, 1999.